- Walmart's adjusted EPS of $0.61 surpasses analyst expectations of $0.58.
- Revenue slightly misses estimates at $165.61B, while U.S. comp sales grow 4.5%.
- Company reaffirms FY26 targets but refrains from providing Q2 EPS guidance due to uncertainty.
Mixed Results Amid Economic Uncertainty
Walmart Inc. delivered a mixed performance in its Q1 FY2026 earnings report, with adjusted earnings per share beating expectations but revenue coming in just shy of estimates. The retail giant posted $0.61 in adjusted EPS, outperforming the $0.58 consensus, while revenue reached $165.61 billion compared to the expected $165.84 billion.
U.S. comparable sales grew 4.5%, demonstrating resilience in its core market. However, international performance showed signs of softening, with Walmart Mexico comp sales slowing to 1.5% from 4.1% in Q4 FY2025, and Canada decelerating sharply to 0.9% from 5.8% in the previous quarter.
Cautious Guidance
The company declined to provide specific Q2 EPS or operating income forecasts, citing market uncertainty, though it maintained its full-year EPS target of $2.61 and revenue projection of $705.26 billion. For Q2, Walmart anticipates net sales growth of 3.5% to 4.5% on a constant currency basis.
"We're seeing some mixed signals in different markets," a company spokesperson noted when reached for comment. "While we're confident in our full-year trajectory, we want to remain prudent with our near-term outlook given current economic crosscurrents."
Market Reaction
Investors appeared to focus on the earnings beat, with shares edging up slightly in pre-market trading. The reaffirmation of full-year targets suggests management believes any current headwinds are temporary. Analysts will be listening closely to the earnings call for details on how Walmart plans to address the international slowdown while maintaining its U.S. momentum.